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The Securities and Exchange Commission (SEC) has approved a Nasdaq rule to allow tokenized stocks & securities trading in the US. The SEC signed off on the rule on March 18, 2026, concluding it aligns with federal securities laws and investor protection standards. The SEC said the structure meets investor protection standards, noting that surveillance, data reporting and settlement timelines remain intact. JUST IN: 🇺🇸 SEC approves Nasdaq rule to allow tokenized stocks & securities trading. — Watcher.Guru (@WatcherGuru) March 18, 2026 The Nasdaq change allows eligible participants to opt into tokenized stock settlement using a designated order flag, signaling that a trade should clear and settle in token form rather than through traditional book-entry systems. Under the framework, tokenized securities must remain fully fungible with their traditional counterparts, sharing the same ticker, CUSIP, and shareholder rights. Investors in tokenized shares will retain standard protections, including voting rights, dividend access, and claims on residual assets, ensuring consistency with existing securities laws. On Wednesday, the SEC also issued joint guidance with the CFTC confirming “most crypto assets” are not securities. The approvals reflect growing momentum around tokenization within regulated financial markets, as exchanges and infrastructure providers explore blockchain-based representations of traditional assets without departing from existing regulatory frameworks.